Interim report January to March 2019
Press release, Stockholm, Sweden 25 April 2019
A quarter with good margins
- Net sales decreased during the first quarter by 23,0% to 43,9 MSEK (57,0)
- Result before depreciation (EBITDA) decreased during the first quarter by 18,9% to 4,3 MSEK (5,3), corresponding to a margin of 9,7% (9,2)
- Net result after tax was 0,5 MSEK (2,9)
- Result per share was 0,00 (0,01)
- Cash flow from the business for the period was 3,3 MSEK (-3,2)
Comments by the CEO
TagMaster has during the period had good margins and all our countries are profitable. When it comes to gross margin we reach 66,7% which is the highest level ever for a quarter, which together with a lower cost level gives a margin of 9,7%.
Our total sales during the quarter has been lower than last year mostly explained by that last year Balogh during the first quarter 2018 had a big share of LTB (Last Time Buy) from products we stopped and also because TagMaster had major deliveries for Indian toll road systems. We have also had delays in delivery of Balogh’s new SIL 4 product platform influencing the volume negatively.
Our British businesses, CA Traffic and CitySync, are now improving more and more and we see the result of the integration made. Cost reductions have been executed and we continue the work to strengthen our sales and marketing resources.
Our French businesses, Balogh, Magsys and Hikob have during the period shown satisfactory results. Our French companies intensify their integration work and all Traffic sales is now merged and controlled by a local manager. Also, operations have been merged with a local manager handling all of the companies’ logistics. With an integrated business we see ahead of us a more powerful processing of the exciting French market. In France we continue recruitments to strengthen our sales and marketing resources.
TagMaster has had a quarter in line with expectations with good margins. The launch of a broader product program from our own companies continues and medium term we see a good growth also on that market.
Our integration work is getting to an end and our now cost efficient units could now focus on increasing sales.
This as well as previous financial reports could be found at the company homepage www.tagmaster.com
For further information, please contact
Jonas Svensson, CEO, +46 8-6321950, email@example.com
This information is information that TagMaster AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 8.30 a.m. CET on April 25, 2019.
TagMaster is an application driven technology company that designs and markets advanced sensor systems and solutions based on radio and vision technology (RFID, Radar and ANPR) for demanding environments. Business areas include Traffic Solutions and Rail Solutions sold under the brands TagMaster, CitySync, Balogh, CA Traffic, Magsys and Hikob with innovative mobility solutions in order to increase efficiency, security, convenience and to decrease environmental impact within Smart Cities. TagMaster has dedicated agencies in the US and in China and exports mainly to Europe, The Middle East, Asia and North America via a global network of partners and systems integrators. TagMaster was founded in 1994 and has its headquarters in Stockholm. TagMaster is a public company and its shares are traded on First North stock exchange in Stockholm, Sweden. TagMasters certified advisor is Erik Penser Bank phone +4684638300, E-mail: firstname.lastname@example.org